Does leasing cars deduct your tax?

Question

For example, I know a person who makes around 200,000 a year from real estates. He drives around a Mercedes S550. I thought 200,000 a year was too small to drive such a car but I recently found out that he leased it to get tax deduction. I don't get how it works. Can someone tell me how this work?

Answer 1

If you have a business or use the car in your line of business ( to make sales calls, etc. ), you can write off part of the car lease during tax time as a business expense.

If the vehicle is only for personal use ( commuting back and forth to work is not considered business use ), you cannot write off the lease.